Penney Fashions Is Adding a New Line of Shoes to the Company

question 57

Multiple Choice

Penney Fashions is adding a new line of shoes to the company portfolio and has the following information: the expected market return is 13%,the risk-free rate is 3%,and the expected return on the new project is 11%.What is the beta of the project?

• A)0.60
• B)0.70
• C)0.80
• D)0.90

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Definitions:

Maximum Number

Maximum number refers to the highest count or quantity that is possible or permitted within a specific context.

Sentence Length

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De-Emphasizing Bad News

The technique of downplaying negative information or news to minimize impact or disappointment.

Cash Refunds

Monetary reimbursements given to customers for the return of products, often as a return policy of retail businesses.